CEIBA Investments (CBA) has published an update from its chairman, John A Herring, in which he says that, at its most recent board meeting, CBA’s board instructed the manager to enter into discussions with bondholders regarding the possibility of restructuring CBA’s €25m 10% convertible bonds due on 31 March 2026. CBA’s board wants to change the payment schedule from a single €25m bullet payment due on 31 March 2026 to five equal annual instalments of €5m, to be made starting in 2025. CBA says that, if no agreement can be reached with its bondholders, its board will consider prepaying €10m under the convertible bonds prior to 31 March 2026 while also seeking to attract €15m in new finance to pay the remainder of the convertible bonds when they fall due.

Herring goes on to says that, once CBA’s board and manager gain additional confidence in the company’s cash flows and financial position, and payments to bondholders can be made according to the new schedule, the board would be in a position to review whether the possibility exists of using part of the free cash-flow of the company to make distributions to shareholders and buying back shares, which, given the discount at which CBA’s shares currently trade at, are both attractive in Herring’s view.